In this article, we will be taking a look at the 10 Best Healthcare Stocks to Buy According to Wall Street Analysts.
The U.S. healthcare sector has significantly lagged the broader market for three consecutive years, returning just 0.3% in 2023, 0.9% in 2024, and 12.5% in 2025. The trend has continued in 2026, with the sector down 1.62% year-to-date compared to the S&P 500’s 10.35% gain.
Many Wall Street analysts attribute this prolonged weakness to investors’ overwhelming focus on artificial intelligence. In a May 18 article, Gareth Powell, Head of Healthcare at Polar Capital, argued that enthusiasm for AI has diverted capital away from traditionally defensive sectors such as healthcare. Echoing that view, UBS Managing Director and Senior Portfolio Manager Michael Zinn said during a June 8 appearance on BNN Bloomberg that the market’s 2026 rally has largely been a “catch-up trade” driven by rising expectations for AI infrastructure earnings, leaving healthcare behind.
The sector’s underperformance has also created a valuation opportunity. Speaking to CNBC on June 7, Mizuho Americas healthcare strategist Jared Holz described healthcare as a value sector, noting that years of heavy investment in technology and AI-related stocks have left healthcare companies trading at more reasonable valuations and facing lower investor expectations. Similarly, SentimenTrader’s Jay Kaeppel argued that healthcare’s unusually weak performance relative to the S&P 500 could signal stronger returns ahead.
While healthcare struggles to regain investor attention, broader market sentiment remains constructive. During a June 1 appearance on CNBC’s “Squawk Box,” Fundstrat’s Tom Lee highlighted several tailwinds supporting equities, including the continued AI boom. Although he expects market volatility and potential headwinds through December, Lee remains bullish, citing improving market breadth, the possibility of U.S. economic growth accelerating toward 4%, and a three-phase market cycle that could push the S&P 500 closer to 7,700 before a stronger rally emerges after the midterm elections.
With that said, now let’s take a look at the best healthcare stocks.
Our Methodology
For our methodology, we screened for healthcare stocks with a price target upside of at least 20%. From this list, we selected the 10 best stocks based on their recent news and developments and ranked them in ascending order based on their analyst upside as of June 21.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Here is our list of the 10 best healthcare stocks to buy according to Wall Street analysts.
10. Elanco Animal Health Incorporated (NYSE:ELAN)
Price Target Upside: 25.52%
Elanco Animal Health Incorporated (NYSE:ELAN) is among the best healthcare stocks.
TheFly reported on June 18 that TD Cowen analyst Steve Scala increased the price target on ELAN to $32 from $31 while maintaining a Buy rating on the shares. The firm highlighted seven potential blockbuster product launches as important drivers for future revenue growth and margin improvement. TD Cowen noted that these upcoming launches, combined with ELAN’s diversified portfolio and leading position in pet retail, could support long-term growth, including projected revenue expansion of more than 5% and earnings per share growth of approximately 10% through 2032.
Furthering its commitment to long-term category leadership, on June 18, Elanco Animal Health Incorporated (NYSE:ELAN) announced plans to launch Elanco Ventures, a corporate venture capital initiative focused on supporting and investing in innovation within the animal health industry. The platform will receive a $25 million multi-year commitment and will target early-stage companies developing therapeutic solutions and enabling technologies. While centered on animal health, Elanco Ventures may also consider opportunities within the broader One Health sector. The fund is expected to begin operations in late 2026 and will focus on Pre-Seed, Seed, and Series A-stage companies under the leadership of Eric Steager.
Elanco Animal Health Incorporated (NYSE:ELAN) is a global animal health company providing therapeutics, vaccines, and disease prevention products for pets and farm animals across more than 90 countries.
9. Agilent Technologies, Inc. (NYSE:A)
Price Target Upside: 25.70%
Agilent Technologies, Inc. (NYSE:A) is among the best healthcare stocks.
TheFly reported on June 11 that Piper Sandler began coverage of A with a Neutral rating and established a $150.00 price target. The firm initiated coverage of the life science tools sector, noting that it prefers to wait for clearer signs of future growth drivers before becoming more positive on additional companies in the space. Piper Sandler highlighted that challenges related to biotech and academic spending, along with China-related exposure, could improve in the near term.
Separately, on June 3, Agilent Technologies, Inc. (NYSE:A) announced a strategic collaboration with OpenAI and Boston Consulting Group (BCG) to expand the use of artificial intelligence across its business operations, product development, and customer solutions. The partnership aims to strengthen the business’s AI capabilities by improving the integration of advanced technologies into its instruments, software, and services.
Through this collaboration, the corporation plans to accelerate AI adoption throughout the company while enhancing its ability to deliver faster and more accurate insights for customers. The initiative reflects Agilent’s focus on building long-term AI-driven capabilities and creating new opportunities to improve decision-making and innovation across its global operations.
Agilent Technologies, Inc. (NYSE:A) is a global leader in life sciences, diagnostics, and analytical solutions, providing instruments, software, and services to customers worldwide across healthcare, research, and chemical markets.
